Mandatory three-year tenancies could deter up to a third of landlords in the private rental sector (PRS) from investing in new rental properties, according to a recent report.

In an article on landlordnews.co.uk, the latest PRS Trends report from Paragon showed that of the 200 landlords surveyed 32% said they would be less likely to invest.

The report also showed that over a third would be more likely to let to older couples, followed by 29% to retired couples, a quarter to families and older single people.

Compulsory three year tenancies could also affect landlord’s choice of those more mobile tenants with nearly half saying they would be less likely to rent to students and over a third to migrant workers.

Director of Mortgages at Paragon, John Heron said: “Landlords are highlighting that the diversity of the tenant population calls for a diversity of tenancy arrangements. While some groups value greater security, many other tenants favour flexibility. Young professionals, for example, value the flexibility that the private rental sector brings to move to different areas and to different types or property.”

The report does state that currently the Government has no plans to implement the compulsory three-year tenancy agreement at this time.